The case involves a dispute between Corporate Pharmacy Services, Inc. (CPS) and the defendants, Mobile Investments, LLC, and The Broadway Group, LLC (TBG). CPS sought to depose Robert Broadway, the corporate representative for Mobile Investments and TBG, but Broadway repeatedly canceled scheduled depositions, citing scheduling conflicts. CPS filed multiple motions to compel Broadway's deposition and to impose sanctions. The trial court granted CPS's motions to compel but initially denied the requests for sanctions. After Broadway continued to fail to appear for depositions, the trial court warned that a default judgment would be entered if he did not comply.
The Etowah Circuit Court eventually entered a default judgment against Mobile Investments and TBG as a sanction under Rule 37(b)(2)(C) of the Alabama Rules of Civil Procedure, due to their repeated non-compliance with discovery orders. Mobile Investments and TBG moved for relief from the default judgment, arguing that their former attorney failed to inform them about the court's orders and the consequences of non-compliance. Their motion was denied, leading to the current appeal.
The Supreme Court of Alabama reviewed the case and affirmed the trial court's decision. The court held that the default judgment was appropriate given the defendants' willful and repeated failure to comply with discovery orders. The court emphasized that knowledge of the attorney is imputed to the client, and the defendants could not hide behind their attorney's alleged omissions. The court found that the trial court had acted within its discretion in entering the default judgment as a sanction for the defendants' conduct. View "Mobile Investments, LLC v. Corporate Pharmacy Services, Inc." on Justia Law
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